Upon purchasing a new home, you and/or your spouse will come across a document that asks how you would like to take vesting on the property. Another time you’ll hear about title vesting is if you’re part of a group of friends or relatives buying a property together, such as a vacation home or cabin.
It can be a confusing question in the world of real estate, and your answer can significantly impact your rights as an owner. That is why it is important to know the ins and outs of title vesting when buying a property. If you feel stuck, no worries; we are here to talk about what title vesting is and everything you need to know to feel comfortable when making a decision.
What is Title Vesting?
Title vesting is simply taking ownership and the official rights of the title on a property. It is necessary when more than one individual appears as the property owner on the title.
How you hold vesting is dependent on a few factors:
- Are you married?
- Do you share ownership equally with another individual?
- Do you own a portion of the property in relation to what you pay for it?
These are all factors that come into play when deciding on how to take ownership of the property.
In most states, there are four common ways to hold a title. Which you decide to take is mostly dependent on how you answered the questions above. [Read more…]